The Government's being urged to be careful about the lockdown period.
The four-week lockdown could be extended further if New Zealand's COVID-19 situation doesn't improve.
Economist Shamubeel Eaqub told Heather du-Plessis Allan the looming recession will be very expensive.
He says when we come out of the lockdown, many businesses will have faced ongoing payments for rents so they'll be vulnerable.
"The longer the lockdown goes, the bigger the chance of more business failures and more job losses."
Eaqub says an alternative to lockdown periods could be providing greater subsidies and support for businesses.
He says if the lockdown continues for too long, we will have long-lasting economic consequences.
"We can avoid this in New Zealand, and I think by having very generous support for businesses and jobs will ensure that we can at least start the recovery process faster than any other country."